U.S. foreign aid
War and Development: Do They Mix?
Countries: Afghanistan, United States

The U.S. army’s “surge” in Afghanistan marked a new focus on development in addition to an increase in the number of combat troops. Development has not typically been part of the military’s purview. Yet, this new approach has much to recommend, especially in a country with endemic poverty and an anemic economy. Promoting economic growth and providing aid tends to make military missions more successful, asserts foreign policy expert Reuben Brigety. Having realized the utility of pairing military and development endeavors, the U.S. army is undertaking a host of new projects. But, asks the Economist in a recent article, to what avail?
The Economist questions both the sustainability and the suitability of the projects the army is implementing. These projects include improving telecommunications infrastructure, teaching Afghan farmers how to boost yields, installing generators to provide electricity and establishing markets to encourage trade.
Few people dispute that these projects have the potential to lift Afghans out of poverty, but many doubt their long-term viability. The Economist argues that the generators are “clearly unaffordable for the cash-strapped government that must one day take charge of [them].” Karl W. Eikenberry, current U.S. Ambassador to Afghanistan, agrees. He writes,"[p]roposals to buy generators and diesel fuel for Kandahar would be expensive [and] unsustainable," according to the Washington Post.
So why is the army adamant about undertaking this project? According to a U.S military official at the NATO headquarters in Kandahar, "[t]his [project] is not about development — it's about counterinsurgency." Development, in this context, is a tool to win the hearts and the minds of the Afghan people. By providing goods and services the Taliban cannot deliver, the military hopes to marginalize the insurgency’s influence.
The army’s ulterior motive for promoting development, can produce poorly designed development programs, points out the Economist. A 60 million dollar telecommunications project is just one example of the potential pitfalls of putting the army in charge of development.
The army favors this project because it will provide an alternative to current networks which local Taliban strongmen control. The Taliban's control of telecommunications is a problem according to the military, as they often restrict or shut down access at night to prevent U.S. informants from reporting Taliban movements. But it's uncertain if the addition of another network will directly affect the locals’ security, health or economic well-being. This uncertainty is further called into question by the fact that there are already four other operational networks in the region. Still, the army views it as part and parcel of its development campaign, illustrating how easily the army’s strategic interests can derail its mission to promote development.
The military’s track record in Afghanistan suggests that bringing development and combat operations under the same roof will be trickier than anticipated. Though there is still time for the military’s projects to bear fruit, their lack of success thus far should not be taken lightly. The trend of subsuming development projects under military command is growing worldwide, according to expert testimony given to the U.S. Senate. If this strategy is as ineffectual as Afghanistan may suggest, then we should take note and revisit the practice.
Defunct Tax System Harms Pakistan's Poor

Pakistan’s economy is growing, but only the upper crust of society enjoy the gains.
Pakistan's economy has grown each year since 1951, despite severe drought, political instability, and the global recession. This economic success is apparent in the Times' description of high-rolling lifestyles in Islamabad.
Much of Pakistan’s capital city looks like a rich Los Angeles suburb. Shiny sport utility vehicles purr down gated driveways. Elegant multistory homes are tended by servants. Laundry is never hung out to dry.
But, while some are well-off, many still struggle to get by. Pakistan ranks in the bottom quarter of the Human Development Index in terms of quality of life. And more than 60 percent of Pakistan's population gets by on less than $2 a day, according to UNDP figures. Two professors from the Lahore University of Management Science argue that Pakistan's skewed tax system is a driver of poverty:
[T]he single most devastating factor for increased income and wealth inequalities in Pakistan remains the regressive tax system. Incidence of tax on the poor in the last 10 years has increased substantially (by about 35 per cent), while the rich are paying almost no direct tax on their colossal income and wealth.
The skewed tax system in Pakistan contributes to poverty by increasing income disparities and redirecting funds for social spending back in to the pockets of the rich, explains the New York Times. But only about 2.5 million out of an estimated 10 million who should be paying taxes actually cough up the money estimates Akbar Zaidi, a political economist with the Carnegie Endowment. As a result, Pakistan has had to apply for a $10.66 billion loan from the IMF.
All in all, the rich gain either because they don't have to pay into the system, or because, when they do, they reap the benefits. In an effort to get some of the lost tax dollars, local communities have adopted a creative strategy. They've started paying transvestites to rap on the doors of the wealthy and collect owed taxes. The New York Times captured these "tax collectors" all dolled up in heels and full make-up, but also swathed with the Islamic hajab in a recent video. Often the rich will pay up just to avoid having these "outcasts" linger.
But, this localized effort is really just a stop-gap measure until real reform is achieved. Many look to the U.S. as the necessary catalyst for change say watchdog groups, such as Probe International. The U.S. essentially subsidizes Pakistan’s economy by providing billions in foreign aid, giving the Pakistani government little incentive to reform the tax system. Thus, indirectly, U.S. aid inevitably hurts Pakistan's poor.
Many are fed up, such as Zaidi, the Times reports. Zaidi believes “[t]he Americans should say: ‘Enough. Sort it out yourselves. Get your house in order first. But you are cowards. You are afraid to take that chance,” he challenges.


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